EP 56 - What is the Short Term Rental Loophole?

The Mark Perlberg CPA Podcast

Let's dive into the what the Short Term Rental really is, and how the IRS's unique treatment of short-term rentals can work to your advantage, the stark differences between passive and active income, and how savvy application of IRS Code Section 469 and cost segregation can maximize your real estate investment returns.

We'll clear up what you need to know about material participation criteria, the 7 days or less rule, and how you may be able to see major tax benefits from STR's. Grasping just one of the seven tests laid out by the IRS could be your golden ticket to mitigating tax liabilities across various income streams. We discuss how the 'substantially all' provision, the 100-hour rule, and first-year strategies can be game-changers in your investment portfolio.

Finally, we tackle the myths clouding the short-term rental tax space, bringing clarity to this high-reward sector. While the allure of tax benefits is strong, the commitment required to manage these properties is substantial. We discuss the realities of short-term rental investments, balancing warnings with the undeniable opportunities that await hands-on investors. For those ready to embrace the challenge, this episode is your guidepost to a more prosperous investment journey.

Fejezetek

1. Tax Benefits of Short-Term Rentals (00:00:00)

2. Material Participation in Short-Term Rentals (00:10:22)

3. Tax Saving Opportunities With Short-Term Rentals (00:21:13)

4. Dispelling Short-Term Rental Tax Myths (00:30:41)